DFSR on windows 2003 R2 servers.

1. Start DFS management console on any Windows 2003 R2 server.
2. Configure Replication (membership, connections and replicated folders). If you already have a previously shared folder what you want to replicate on other server - do not copy files, just replicate.
3. After the replication is done configure a namespace.
4. Publish the replicated folders to the namespace, and configure login script to access the published share.
5. It is perfectly normal to have a staging file (..\..\DfsrPrivate\Staging) containing data "If the size of a staging folder is below 90 percent of configured capacity (the high watermark), then staged files are kept in the folder and can be used in case new members are added" - from http://technet.microsoft.com/en-us/library/cc782648(WS.10).aspx